Chicago Short-Term Rental Regulations

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Permit & Licensing

Shared Housing Registration

Zoning restriction: Except as otherwise provided in Section 4-17-070, it shall be unlawful for any shared housing host to advertise for rent, list on a platform, rent, or book for future rental, or to permit any person to advertise for rent, list on a platform, rent, or book for future rental, any shared housing unit that is located within a restricted residential zone.

Application Process

The Shared Housing Registration Portal is where hosts begin the registration process by submitting an application to receive a determination of eligibility.

Tax Obligations

Collection: A Short-Term Residential Rental Intermediary must apply and collect hotel accommodation tax and submit it to the City as part of each rental transaction facilitated through the platform.

Occupancy & Density Limits

It shall be unlawful for any shared housing host to exceed the maximum occupancy limit of: (i) two persons, not including a guest’s children under the age of 18, per guest room within the shared housing unit; or (ii) the actual allowed capacity of the shared housing unit based on the applicable provisions of the building code.

Safety

• Each shared housing host shall ensure that the shared housing unit is in compliance with applicable laws regarding the installation and maintenance of functioning smoke alarms and carbon monoxide detectors.
• Each shared housing host shall post in a conspicuous place near the entrance of the shared housing unit: (i) the name and telephone number of a local contact person; and (ii) an evacuation diagram identifying all means of egress from the shared housing unit and the building in which it is located.

Penalties for Non-Compliance

• Illegal activity and objectionable conditions: not less than $2,500 nor more than $5,000 for each offense. Egregious condition: not less than $5,000 nor more than $10,000 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.

Platform Requirements

No person shall engage in the business of short term residential rental intermediary without first having obtained an intermediary license under Article II of this Chapter 4-13.

Compliance Checklist

1. Meet the safety requirements
   • Each shared housing host shall ensure that the shared housing unit is in compliance with applicable laws regarding the installation and maintenance of functioning smoke alarms and carbon monoxide detectors.
   • Each shared housing host shall post in a conspicuous place near the entrance of the shared housing unit: (i) the name and telephone number of a local contact person; and (ii) an evacuation diagram identifying all means of egress from the shared housing unit and the building in which it is located.
2. Apply for the permit
   • $250
   • How to apply: The Shared Housing Registration Portal is where hosts begin the registration process by submitting an application to receive a determination of eligibility.
3. Collect and remit tax
   • How the tax is collected: A Short-Term Residential Rental Intermediary must apply and collect hotel accommodation tax and submit it to the City as part of each rental transaction facilitated through the platform.
4. Renew your permit
   • $250
   • Renewal period: annually

Frequently Asked Questions

Do you need a permit to run a short-term rental in Chicago?

Yes.

Permit: Shared Housing Registration

How to apply: The Shared Housing Registration Portal is where hosts begin the registration process by submitting an application to receive a determination of eligibility.

How much does a short-term rental permit cost in Chicago?

Initial fee (Shared Housing Registration): $250

Renewal fee (Shared Housing Registration): $250

Renewal period (Shared Housing Registration): annually

What taxes do you pay on a short-term rental in Chicago?

Hotel Accommodations Tax: 4.5%

Vacation Rental and Shared Housing Surcharge: 6%

How the tax is collected: A Short-Term Residential Rental Intermediary must apply and collect hotel accommodation tax and submit it to the City as part of each rental transaction facilitated through the platform.

What are the penalties for short-term rental violations in Chicago?

Penalty: Illegal activity and objectionable conditions: not less than $2,500.00 nor more than $5,000.00 for each offense. Egregious condition: not less than $5,000.00 nor more than $10,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.